Cryptology Blog Cryptocurrency Cyberconnect: detailed project analysis

Cyberconnect: detailed project analysis

ARTICLE BY

Danil Krokus

8 MIN READ

Cryptocurrency

13 March 2024

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ABOUT THE PROJECT

CyberConnect is a pioneer and leading player among decentralized Web3 social platforms that enables developers to build social applications that empower users to own their digital identity, content, connections and monetization channels.

The platform includes three key features aimed at enriching the user experience:

CyberProfile - an innovative standard for decentralized identity that opens doors to the Web3 world;
CyberConnect Social Graph - a unique system that integrates your digital identity, data, content and social circle;
CyberWallet - an advanced smart wallet that securely stores your digital assets and simplifies the transition to Web3.

NARRATIVE / SEGMENT

Infrastructure solutions (Infrastructure)

CyberConnect Infrastructure is used in more than 50 projects to develop new and exciting user-centric applications. Some notable projects include:

Link3, a Web3 social network with publications, events and loyalty programs;
Phaver, a decentralized social networking platform with 110 thousand unique active users per week;
ReadON, a Web3 content aggregator app with social and reading features to earn money;
Dopamine, a comprehensive user-centered crypto mobile app;
Oasis, a meta-universe where 1 million daily active users socialize;
Mocaverse, an NFT collection owned by Animoca Brands;
Galxe, a Web3 network of credentials.

PROJECT ANALYSIS

Idea

Today's social media world is dominated by a few large profit-seeking corporations that put their financial goals first. This leads to these platforms often exploiting user data and manipulating content, communities, and personalities for the sake of increasing their revenues. This centralization of data on social networks creates an ecosystem where user information is misused for monetization and innovation is stifled, preventing developers from offering new and creative social solutions and features.

CyberConnect aims to challenge this status quo by creating a community-owned social network that offers users full control over their digital lives, free from centralized and biased technologies.

Team

Information about the team can be found on the project's Linkedin. We are interested in people who will implement the technical side (the project has chosen a rather complex technical direction) and the marketing campaign (in the crypto market it is very important to attract attention for the success of the project).

Wilson Wei - CEO, Co-Founder. Former President of the Association of Chinese Entrepreneurs in Berkeley. From 2017 to 2019, he was CEO and Co-Founder at Lino Network. Graduated from Haas Business School at the University of California, Berkeley.

Shiyu Zhang - Co-Founder. Along with Wilson Wei, was Co-Founder of Lino Network and DLive. Shanghai, China.

Funds and Partners

Binance Incubator - N/A

Seed Funding (Equity + SAFT) - $10.1 million - $0.500 per token.
Multicoin Capital (lead investor and major fund) - Tier 1
Animoca Brands - Tier 2
Hashed Fund - Tier 2
Mask Network - Tier 2
Corporation - Tier 2
Draper Dragon - Tier 2
Sky9 Capital - Tier 3
Smrti Lab - Tier 4
Zoo Capital - Tier 4
Investment lockup for 12 months, followed by three years of quarterly vesting.

Series A - $15 million - $3.00 per token.
Animoca Brands (lead investor) - Tier 2
The Spartan Group - Tier 1
Delphi Digital - Tier 1
IOSG - Tier 2
Tribe Capital - Tier 2
Polygon Studios - Tier 2
Amber Group - Tier 2
Sky9 Capital - Tier 3
SevenX Ventures - Tier 3
Protocol Labs - Tier 3
GGV Capital - Tier 4
Investment lockup for 12 months, followed by a three-year quarterly vesting.

Coinlist public sale - $5.4 million - $1.80 per token.

Event Metrics:

Sale went live on 18/05/23.
Sail under the event: 3,000,000 tokens (3% of the total).
Token price: $1.8.
Vesting: 25% TGE with a linear split over 6 months.

At the moment, the ROI from the sale is +398.2%

Roadmap

The CyberConnect project stands out for its ambitious plans and proves its ability to follow its roadmap. The active development and the achievement of the targets set for 2023 serve as evidence of its progress. With the setting of new goals for 2024, the project shows its focus on further scaling and innovation, which reinforces its position as a significant player in the field of decentralized Web3 social platforms.
However, the project has not yet reached the 1.5 million users and 120 dAaps mark it wanted to reach by the end of 2023. This may also be due to the large investments from funds, which are waiting for the rapid results.

MEDIA PART

One of the keys to the success of any project is its visibility and audience perception. Without enough people's attention, even the most innovative technology can be undervalued, making the success of the project less sustainable.

Website

The website design and structured layout promotes easy navigation, reflecting the project's focus on innovation, community engagement and transparency in the evolving Web3 ecosystem.
You can subscribe to a newsletter for up-to-date information. A very convenient way to stay in touch with the project and understand how it is developing.

Twitter

The main tool used for media development of crypto projects.
The account has 568 thousand followers, which is an excellent result for an infrastructure project with large investments.

The TwitterScore service gave the account a score of 80 points. The analysis methodology calculates the popularity of the project in the crypto space. The score is mainly influenced by the subscriptions of large accounts. The more influential pages subscribed to the account, the higher the rating.

A score of 79, indicates its strong social media presence and level of engagement on Twitter. This score reflects how active the project is on the platform, how often it interacts with its community and the overall impact of its tweets. At the moment, the trend of subscriptions is declining.

Discord

The main platform for creating a cryptocommunity and communicating with the audience.
The channel has 158 thousand subscribers, which is a great result for an infrastructure project.

Inside there is a large number of rubrics used to structure the flow of messages (communication rules, announcements, flooding, technical issues and so on). The channel is live, there is regular communication on thematic issues of the project, quickly processed by moderators.
The platform is a tool for identification of active community members and participants of network testing.

ACTIVITY PROGRAMS

Ambassador Program

CyberConnect has already been launched. The Ambassador program was educational in nature on SocialFI. The CyberTelegram program lasted until 24/03/2023. Participants were rewarded with Mystery boxes, which were traded at 0.45 ETH.

TOKENOMICS

Issuance

The maximum supply of CYBER tokens is set at 100 million units, which provides a clear framework for token supply and helps prevent inflation.

Token distribution

Private sale: 25.12% - this shows significant seed funding and investor confidence.
Team and advisors: 15.00% - fair long-term interest for those managing and guiding the project.
Community Treasury: 10.88% - funds set aside to support the community and initiatives.
Marketing: 10.00% - reflects the importance of attracting and retaining users.
Developers: 10.00% - incentivizing developers to create value in the ecosystem.
Ecosystem Partners: 9.00% - supporting and developing partnerships.
Future Community Rewards: 6.60% - to encourage active participation in the ecosystem.
Early Integration Partners: 5.00% - to reward platforms that are the first to integrate with CyberConnect.
Binance Launchpool: 3.00% - inclusion in one of the largest platforms to increase visibility.
Public Sale: 3.00% - giving the general public the opportunity to participate in the project.
Community Rewards Season 1: 2.40% - direct incentives for first time users.

Vesting (token unlocking schedule)

Seed Round and Series A: 1 year lock, followed by quarterly vesting for 3 years, which provides a gradual release of tokens and stability for the project.
Public Round: 25% unlocked at the time of TGE (Token Generation Event), followed by linear vesting for 6 months.
Launchpool: 100% available immediately, indicating immediate engagement of participants.
Team and Advisors: 15 months loc, followed by quarterly vesting for 3 years.
Marketing, development, etc.: different vesting timelines reflect plans for long-term development and support of the project.

*A clear representation of the vesting schedule shows a gradual and predictable increase in token availability, which helps prevent abrupt changes in turnover and maintains long-term stability of the token price.

This structured and thoughtful distribution and vesting of CyberConnect tokens confirms the commitment to the sustainable growth and development of the project, taking into account the interests of both the founders and the community. This ensures that all stakeholders remain motivated and engaged throughout the project lifecycle.

Token functionality

CYBER will provide the following utilities for the decentralized social network protocol:

Governance. CYBER token holders will vote on proposals to improve CyberConnect that ensure the sustainable long-term success of the CyberConnect protocol. Upcoming proposals include activating a service fee for paid transactions on the protocol; changing the service fee rate; changes to the tokens allowed for payment; expanding the protocol to new blockchains; and allocating a budget for a developer grant program, community participant program, offline and online community events to grow the ecosystem.
CyberProfile mining fees. CyberProfile is the entry point for developers and users into the CyberConnect ecosystem. CYBER will be used as the actual currency for payment when purchasing a CyberProfile with a premium username.
Gas Payment in CyberWallet. CyberConnect's upcoming smart contract wallet solution, CyberWallet, will provide users with a seamless Web3 connectivity experience without the need to use source phrases or purchase native tokens to pay for gas in various blockchain ecosystems. CYBER will be used as a price meter and a means to pay gas commissions for all transactions in CyberWallet on EVM-compliant blockchains. CyberWallet is still under development and will be available on Ethereum, Optimism, Arbitrum, BNB Chain, Base and Polygon.

METRIC ANALYSIS

Development activity

The project is still actively developing. This can be seen from the repository update schedule.

Ecosystem

The CyberConnect project has set a goal of 150 dApps by the end of year 23. There are still problems with this, but more and more crypto companies are signing collaborations as well as deploying, thus actively developing the ecosystem.

Competitive Analysis

Lens Protocol:

Focus: Lens Protocol is focused on creating permission for NFT-based networking, where each profile is an NFT.
Technology: utilizes NFT standards to provide ownership of profiles and content in the network.
Integration: provides modular tools for developers to create a variety of social applications.
Monetization: owning a profile as an NFT opens new avenues for monetization and economic models for content creators.
Accessibility: builds on Polygon, which can provide lower transaction costs and high performance.

Innovation: both projects offer unique solutions for social interaction in the Web3 era. CyberConnect focuses on social connections and integration, while Lens Protocol relies on NFT to represent profiles and social interactions.
Use of blockchain technology: Lens Protocol uses NFT technology for social interaction, which can offer interesting opportunities for content creators in terms of monetization and copyright. CyberConnect is developing tools for identity management and social connection management that can also utilize NFT, but with a broader focus on integration and extension.
Scalability and transaction costs: running on Polygon, Lens Protocol can offer lower transaction costs and faster transactions, making it more accessible to the user. CyberConnect aims to be interoperable with various EVM-compliant blockchains, which can lead to greater reach, but may also face higher transaction costs depending on the network.
Developer accessibility: Lens Protocol offers flexible and modular tools for building applications, which may appeal to developers due to the ease of creating customizable solutions. CyberConnect also provides APIs and SDKs for integration, making it a useful resource for developers.

The market data in the moment is better for Cyberconnect. It has twice the investment, Market cap as of March 2024 is over $200 million. While Lens is not that active project yet and has no visible token circulation.

In conclusion, both projects represent significant value to the Web3 ecosystem and the choice between them will depend on the specific needs of developers and users. They are not direct substitutes for each other, but rather complement the diversity of tools and capabilities in decentralized social networking.

CONCLUSION

CyberConnect is a pioneer in the field of decentralized Web3 social platforms, offering developers tools to build social applications that empower users to own digital identities, content, connections, and monetization channels. The platform's infrastructure supports more than 50 projects, facilitating the development of user-centered applications. The platform challenges centralized profit-driven social networks by offering community-owned social networks, giving users full control over their digital existence.

The media background is very active. Social media platforms are constantly updated, with users engaged with the content. Also pleasing is the high online discord, fast moderation responses and a positive Twitter Score.

According to public information, 30.5 million dollars have been invested in the project, but this amount is higher as it is separately known about the investment from Binance. Also, SouberConnest boasts rounds of investments from Tier 1 and Tier 2 funds. The realized profit for investors is from 3x to 18x to the current token price, more about it in the section "Project Analysis - Funds and Partners".

Based on the analysis of the presented data, the CyberConnect project is promising for long-term investments in the context of the development of the Web3 ecosystem. However, this is not a financial recommendation, and potential investors should conduct their own research and consider all risks.